Blue Lagoon Resources Inc. is initiating a 10,000-metre Phase One core drilling and property-wide exploration program at its producing Dome Mountain gold mine near Smithers, British Columbia.

The campaign will deploy drilling rigs to test several targets across the extensive land package surrounding the mine. The drilling program will focus on the Alpine Veins, the McKendrick Prospect, the Chance Structural Zone, the Forks Prospect, a cadmium-in-soil anomaly, and the down-dip continuation of the Boulder Vein.

Work on the Boulder Vein is designed to support an updated, expanded resource estimate for the project by early to mid-2027. Underground production at Dome Mountain has increased to a sustained level of 125 tonnes of ore per day, building on earlier production rates of 100 tonnes per day reached in April 2026.

The project operates under a full mining permit granted in February 2025, representing one of only nine permits issued in British Columbia since 2015.

“Our entire Dome Mountain enterprise is very versatile and highly prospective having significant indicated and inferred gold resources, a Mine Permit in place that has allowed us to be in production over the past year, and, a very extensive prospective land package with numerous mineralized veins and systems being prioritized for exploration and evaluation. This Phase One drilling program is just the first part of a very comprehensive multi-year plan dedicated to realizing the full potential of Dome Mountain.”

— Bill Cronk, Chief Geologist for Blue Lagoon

Alongside the exploration kickoff, Blue Lagoon intends to settle approximately $723,664 of outstanding indebtedness through the issuance of 1,206,107 common shares at a deemed price of $0.60 per share. The settlement includes $586,165 in legacy obligations stemming from the 2020 acquisition of the Dome Mountain mine, with the remaining balance owing to the company's president and chief executive officer. The proposed debt settlements remain subject to acceptance by the Canadian Securities Exchange.

Read the full announcement: Blue Lagoon to Start Drilling at Its Dome Mountain Gold Project